The results of the survey were presented by Swiss climate change consulting firm South Pole at a consultation workshop titled "Commercial Opportunities for Forest Carbon Credits in Vietnam" held on 4/12 in Hanoi.
Specifically, 33% of buyers surveyed expressed high interest in forest carbon credits and assessed Vietnam as having significant potential. Additionally, 40% showed medium interest, ready to consider and seek purchasing opportunities.
South Pole stated that potential customers include: financial organizations, investment funds, trading companies, credit retailers and brokers, governments, and corporations. They prioritize volumes of about 100-500 thousand tons of carbon per transaction, with prices ranging from 5-15 USD, though many buyers were reluctant to disclose their expected prices.
Regarding project types for credit generation, afforestation/reforestation (A/R) was most preferred. This was followed by improved forest management (IFM), reduced emissions from deforestation and forest degradation (REDD+), and wetland restoration and conservation (WRC). Buyers seek credits certified under reputable international standards such as Verra, ART, and Gold Standard.
A South Pole representative indicated that buyers want to minimize legal risks, thus prioritizing the project's completion level. Ideal projects for buyers have successfully issued credits, completed certification, and achieved stakeholder consensus.
"As an emerging carbon market, Vietnam has many opportunities to integrate buyer needs and criteria into its carbon market framework and Article 6 (the international cooperation mechanism of the Paris Agreement on climate)", said a South Pole representative.
In addition to future forest carbon credit projects in Vietnam, buyers also show interest in the remaining credits from the Emission Reductions Payment Agreement (ERPA) between the Government of Vietnam and the World Bank's Forest Carbon Partnership Facility (FCPF).
This project was implemented across 2,9 million hectares of natural forest in six North Central provinces (now five), aiming to reduce 10,3 million tons of CO2 over a six-year period starting in 2018. Notably, Vietnam exceeded its target in the first reporting period of 2018-2019, achieving a reduction of 16,2 million tons of CO2.
After receiving payment from the World Bank for the targeted 10,3 million tons, over 5,9 million tons of surplus credits are being considered for transaction to generate additional revenue. South Pole's survey indicated that 73% of buyers are "potentially interested".
At the workshop, a representative from Emergent, the trustee of the LEAF Coalition (Lowering Emissions by Accelerating Forest Finance), stated their intention to purchase credits and advance plans with the Ministry of Agriculture and Rural Development.
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A corner of Bach Ma National Park – one of the beneficiaries of the ERPA – in 3/2025. Photo: Vo Thanh |
A corner of Bach Ma National Park – one of the beneficiaries of the ERPA – in 3/2025. Photo: Vo Thanh
A survey by the Energy and Environment Consulting Company (VNEEC) with local authorities participating in the ERPA revealed that most want to sell surplus credits to large greenhouse gas emitters through the forest environmental service payment mechanism (80%), or sell them to the World Bank (60%).
For future carbon credit projects, 100% of local authorities assessed REDD+ as having the highest potential, and 60% chose IFM.
However, a current market challenge is the legal gaps in carbon credit commercialization activities in Vietnam, according to Dang Thi Hong Hanh, co-team leader and carbon market expert at VNEEC.
Specifically, Vietnam lacks official pricing regulations, with only a draft decree outlining principles and two methods for establishing starting prices. This leaves organizations without a unified basis for valuation.
Regarding benefit sharing, there is no general mechanism applicable to all forest carbon credits. Decree 107 applies only to the ERPA, while the new draft decree merely outlines principles for managing and utilizing revenue. Additionally, there are issues with transaction and technical infrastructure, such as a non-operational national registration system and carbon exchange, and forest carbon not yet being an official indicator in forest inventories.
The VNEEC expert recommended the early issuance of decrees and national standards related to carbon exchanges, international credit trading, forest carbon absorption and storage services, and national forest carbon credit standards. Simultaneously, they advised developing a market support ecosystem, including: financial institutions, consulting and appraisal organizations, and connections with buyers.
Vien Thong
